Daily Times

Around 84 percent of the businessmen and researchers suggest that there should be no increase in the policy rate and nearly half of them suggest a cut between 50 to 100 bps.

The monetary policy survey was conducted recently prior to the State bank of Pakistan’s Monetary Policy Committee (MPC) meeting scheduled later this month, by the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), according to a statement.

The policy brief issued on the occasion noted with a sigh of relief that the core inflation in Pakistan, the most definitive indicator for setting up the policy rate for any central bank, has significantly subsided to 6.3 percent in August 2021, compared with 6.9 percent in July 2021.

Federation of Pakistan Chambers of Commerce and Industry President Mian Nasser Hyatt Maggo said that the policy interest rate must not be over six percent and if the central bank wants to promote business activities and economic growth in the country, it should be brought down to five percent. He also pointed out that the policy interest rate in the region is 3-4 percent only and “we have to compete with the region”.

The FPCCI in April last announced setting up of a top-level policy and research board to support the government for making industry friendly policies. The scope of the board includes but is not limited to develop policy position and advocacy material for the president, the FPCCI and his team to assist the federal and provincial governments in formulation and implementation of policies, budgetary and fiscal measures, financial and inclusion policies and regulatory matters of the all government and autonomous agencies.

The FPCCI appointed Mohammad Younus Dagha, former federal secretary for water and power, commerce and finance as the chairman of the Policy and Research Board. Dagha is one of Pakistan’s most accomplished and celebrated civil servants and commands an astounding grip over major aspects of the economy and its important sectors.